G4S to take £70million hit after patchy performance at Olympics

L4S will have to take an even bigger hit to their finances than they expected after their patchy performance at the London Games 2012.

The security company, who only fulfilled 83% of their contracted shifts, will suffer a £70million loss, £20million more than they were expecting.

After having negotiated with Games organisers Locog over a final settlement for the £240million contract, the group incurred additional costs of around £18 million relating to charitable donations, fees and the cost of sponsorship and marketing.

Big hit: The company will suffer a £70million loss after their botched job at the London Games 2012

Reinforcements: The government were forced to call on the military when G4S failed to fulfill their contract

It's not the only loss the company has suffered, with two directors having quit after failing to provide the 10,400 guards that were expected, forcing the government to call in army reinforcements.

Chief operating officer David Taylor-Smith and Ian Horseman Sewell, who was head of global events, both stepped down from their positions, but chief executive Nick Buckles stayed in his post.

Buckles said: 'The UK Government is an important customer for the group and we felt that it was in all of our interests to bring this matter to a close in an equitable and professional manner without the need for lengthy legal proceedings.'

Locog said the taxpayer's interests have been fully protected in compensating for the difficulties experienced by G4S's shortcomings.